EUR remains tied to the 1.2900 mark in a choppy session, ahead of tomorrow’s ECB meeting and against a backdrop of increasing rumours involving Spain and its request for aid. In the opinion of P.Kinsella, researcher at Commerzbank, “a Spanish assistance programme has already been broadly priced in by the foreign exchange markets. However what has not been priced in is the reaction of the ECB”.
As of writing, the cross is now losing 0.09% at 1.2908 facing the next support at 1.2876 (hourly low Oct.3) followed by 1.2822 (MA200d) then 1.2804 (low Oct.1) and 1.2796 (MA30d).
On the upside, a breakout of 1.2968 (high Oct.2) would open the door to 1.3059 (high Sep.20) then 1.3120 (high Sep.18) and 1.3165 (Upper Bollinger).